Petrofac’s chief executive said today that the energy service firm’s portfolio is in good shape and that its net debts would be in line with expectations at year-end.
The London-headquartered company said trading was in line with expectations and that it had booked $5.2 billion worth of new orders so far this year.
Net debt is forecast to be around $850 million at December 31.
In engineering and production services, Petrofac said good performance from its international operation and maintenance contracts had offset “lower activity, utilisation and order intake” in the UK North Sea.
The company has secured awards and extensions worth about $1.1 billion in the year to date, mostly in the UK, Iraq and Kuwait.
Petrofac chief executive Ayman Asfari: “Overall trading remains in line with expectations, underpinned by high levels of project activity, good project execution and strong financial discipline.
“We have seen a recovery in new order intake in 2017, securing US$5.2 billion in new awards in the year to date in both existing and new markets. Tendering activity remains high, we continue to maintain our bidding discipline in competitive markets and we have a healthy order backlog.
“Our portfolio is in good shape, and we remain focused on project delivery and maintaining our cost competitiveness through operational excellence. This – together with measures we are taking to strengthen our balance sheet – positions us well.”
Petrofac also announced some board room changes. Chairman Rijnhard van Tets will step down in May 2018 after an 11-year tenure.
He will be replaced by current senior independent director René Médori.
Sara Akbar has been appointed as a non-executive director with effect from January 1, 2018.
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